Tax Ombud Aligns With OGFZA To Promote Transparent Taxation

BY CHIKA OKEKE, Abuja

The Office of the Tax Ombud, OTO, has aligned with the Oil and Gas Free Zones Authority, OGFZA, to promote fair, transparent, predictable and investor-friendly tax administration within Nigeria’s oil and gas free zones.

When fully operational, the collaboration will attract more Foreign Direct Investment, FDIs, into the free zones, while resolving tax and fee-related grievances.

The Tax Ombud/Chief Executive of OTO, Dr John C. Nwabueze, who stated this during a courtesy visit to OGFZA, noted that the two agencies could collaborate in areas including taxpayer complaint resolution, clarification of tax incentives, review of systemic complaints, and the promotion of transparency and accountability.

This, he believed, would contribute to increased voluntary tax compliance and a higher tax-to-GDP ratio, adding that the sensitisation programme would improve understanding of its mandate, services and the rights available to taxpayers.

He said: “I am very much aware that OGFZA regulates and coordinates activities in the zones, grants permits and licences, administers incentives, and resolves disputes among stakeholders. The Office of the Tax Ombud complements these functions by providing an independent channel for reviewing and resolving complaints relating to taxes, levies, regulatory fees, customs duties and excise matters.”

Nwabueze stated that effective protection of taxpayers’ rights depended on citizens knowing those rights and understanding where and how to seek redress.

He was optimistic that the establishment of OTO was designed to address gaps in Nigeria’s tax dispute-resolution framework, particularly administrative and procedural challenges faced by taxpayers.

Nwabueze said: “For many years, Nigeria’s tax and revenue dispute-resolution framework was largely built around objections to assessments, administrative review, the Tax Appeal Tribunal and the courts.

“While these mechanisms remain important for determining substantive tax liabilities, there was a gap for taxpayers who experienced administrative or procedural difficulties in their dealings with revenue authorities.”

He maintained that the tax reforms initiated by President Bola Ahmed Tinubu were aimed at addressing weaknesses in the tax and revenue system, including fragmentation, complexity and the burden of multiple taxes.

The Managing Director/Chief Executive Officer of OGFZA, Usman Bamanga Jada stated that investors in Nigeria’s oil and gas free zones have benefited from incentives, tax exemptions and customs duty concessions introduced by the Federal Government to encourage FDI inflows, private-sector-driven infrastructure development and employment generation.

Jada hinted that the partnership with the Office of the Tax Ombud is timely, as it would help build investor confidence and promote business activities within the special economic zones.

Both agencies have appointed liaison officers to coordinate the relationship and facilitate the objectives of the collaboration.